May 26, 2016

Frick India , PNB Finance , Others -.Good News For Investors

The news would come as relief to investors, whose monies are stuck in companies where no trading takes place.SEBI chief UK Sinha said the regulator plans to force promoters of companies whose shares do not see active trading both at the main bourses and in regional exchanges to delist. Such promoters will have to provide an exit route to investors, failing which they will be penalised. India has about 8,000 listed companies but active trading hardly takes place beyond the top 1,000. As many as 1,200 companies have been suspended for trading for over seven years now, and these will be the first that will be forced to delist. Besides, there are over 3,000 companies listed on various regional stock exchanges that have become defunct, Sinha said. The exercise for over 4,200 listed firms would be completed this year. Such exercises would be taken up going forward to clean up the market from what the Sebi chief described as "a source of nuisance".